"Economy is not a science, it's a social science," Blankfein said. "A lot of good things are happening, but sentiment is so negative."

People might wonder why the country isn't growing faster. Because of the negative sentiment, people are scared and afraid to make mistakes, he explained.

So what are his solutions?

"Less negative reporting and less negativity," he said.

"Culture of America has gotten too negative— Is that a trend or a cycle? I think its a cycle...I'm optimistic, but I will say there's a moment where sentiment is more negative than the facts command. And sentiment matters."